Correlation Between ISign Media and NeXGold Mining
Can any of the company-specific risk be diversified away by investing in both ISign Media and NeXGold Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ISign Media and NeXGold Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iSign Media Solutions and NeXGold Mining Corp, you can compare the effects of market volatilities on ISign Media and NeXGold Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ISign Media with a short position of NeXGold Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISign Media and NeXGold Mining.
Diversification Opportunities for ISign Media and NeXGold Mining
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ISign and NeXGold is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding iSign Media Solutions and NeXGold Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeXGold Mining Corp and ISign Media is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on iSign Media Solutions are associated (or correlated) with NeXGold Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeXGold Mining Corp has no effect on the direction of ISign Media i.e., ISign Media and NeXGold Mining go up and down completely randomly.
Pair Corralation between ISign Media and NeXGold Mining
Assuming the 90 days horizon iSign Media Solutions is expected to generate 10.82 times more return on investment than NeXGold Mining. However, ISign Media is 10.82 times more volatile than NeXGold Mining Corp. It trades about 0.07 of its potential returns per unit of risk. NeXGold Mining Corp is currently generating about -0.01 per unit of risk. If you would invest 1.00 in iSign Media Solutions on August 30, 2024 and sell it today you would earn a total of 1,375 from holding iSign Media Solutions or generate 137500.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSign Media Solutions vs. NeXGold Mining Corp
Performance |
| Timeline |
| iSign Media Solutions |
| NeXGold Mining Corp |
ISign Media and NeXGold Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISign Media and NeXGold Mining
The main advantage of trading using opposite ISign Media and NeXGold Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISign Media position performs unexpectedly, NeXGold Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NeXGold Mining will offset losses from the drop in NeXGold Mining's long position.| ISign Media vs. Bausch Health Companies | ISign Media vs. Leveljump Healthcare Corp | ISign Media vs. Arbor Metals Corp | ISign Media vs. Element Fleet Management |
| NeXGold Mining vs. Ramp Metals | NeXGold Mining vs. Canadian Utilities Limited | NeXGold Mining vs. QC Copper and | NeXGold Mining vs. Algonquin Power Utilities |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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